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Required information Greenwood Company manufactures two products-14,000 units of Product Y and 6,000 units of Product Z. The company uses a plantwide overhead rate based
Required information Greenwood Company manufactures two products-14,000 units of Product Y and 6,000 units of Product Z. The company uses a plantwide overhead rate based on direct labor-hours. It is considering implementing an activity-based costing (ABC) system that allocates all of its manufacturing overhead to four cost pools. The following additional information is available for the company as a whole and for Products Y and Z: Estimated Overhead Expected Activity Activity Cost Pool Machining Machine setups Production design General factory Activity Measure Machine-hours Number of setups Number of products Direct labor-hours Cost $ 200,00 10,000 MHs $ 100,000 $ 84,000 200 setups 2 products 300,000 12,000 DLHs Activity Measure Machining Number of setups Number of products Direct labor-hours ProductY 8,000 Product z 2,000 40 160 9,000 3,000 14. Using the ABC system, what percentage of the Product Design cost is assigned to Product Y and Product Z? Product Y Product 2Z Product design cost
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